The Donald Trump administration has suspended Microsoft from a US programme that allows companies to seek green cards for workers who come to the country on H-1B visas, accusing the technology giant of fraud.News agency Associated Press reported that Vice President JD Vance announced the decision at a White House news conference, alleging that Microsoft had replaced laid-off American workers with foreign workers.“If you do the math, for every worker that Microsoft laid off, they replaced that worker with one and a half foreign indentured servants,” Vance said.VP JD VANCE: MICROSOFT ABUSED VISA SYSTEM WHILE REDUCING U.S. WORKERS https://t.co/0V29ic1eKp— Insider Paper (@TheInsiderPaper) October 8, 2026Secretary of Labor Keith Sonderling added that some of the largest IT firms in the world would also be suspended from that program, including Cognizant, Infosys, Tata, Wipro, HCL and Capgemini, as well as Adobe. Microsoft did not immediately respond to a request for comment.He also said nine universities, including Harvard, Yale and Stanford, would be investigated for allegedly bringing in international students to undercut American wages. Labor Inspector General Anthony D’Esposito said subpoenas had already been served.The report added that Microsoft did not immediately respond to a request for comment.The move puts one of the world’s biggest technology companies at the centre of the Trump administration’s widening crackdown on the H-1B visa system, which Trump’s supporters have long criticised as undercutting American workers and rife with abuse.What is the H-1B visa programme?The H-1B programme lets US companies hire foreign workers for specialised, high-skilled jobs where they say it is hard to find American workers.Story continues below this adTechnology companies are among the biggest users of the programme. Nearly three-quarters of H-1B approvals go to workers from India, according to AP, making the latest move particularly significant for Indian technology professionals working in the United States.Vance’s announcement on Thursday concerns the programme through which firms can apply for permanent residency, or green cards, for H-1B workers.The Trump administration is accusing Satya Nadella-led company of fraud, but the material released with the announcement did not provide further details of the alleged fraud.Why Microsoft is being targetedThe Trump administration has increasingly focused on whether companies use foreign-worker visa programmes after laying off US employees. Vance’s accusation against Microsoft centred on the company’s workforce reductions and use of foreign workers.Story continues below this adThe administration has argued that the H-1B system should be used for genuinely specialised jobs and not as a way for companies to replace American workers with lower-paid foreign labour.The White House has separately said it wants greater scrutiny of H-1B applications where employers have recently laid off similarly situated US workers.The Microsoft action comes just one day after the Trump administration announced another measure targeting international students and their ability to work in the US.AP reported that the Department of Homeland Security on Wednesday proposed a $70,000 fee for international students seeking to work in the United States through the Optional Practical Training programme, or OPT.Story continues below this adThe proposed rule would require schools to pay the fee for every student participating in OPT. OPT allows international students to work in jobs related to their field of study during or after their time at a US school.Why this matters for IndiansThe H-1B programme has particular importance for Indian professionals. Nearly three-quarters of H-1B approvals go to workers from India. Indian technology professionals, therefore, form a large part of the foreign-worker population potentially affected by changes to the programme.For Indian workers employed by technology companies, the developments could have implications beyond obtaining or extending an H-1B visa, particularly where workers are seeking employer-sponsored permanent residency.